1.A scientific explanation is refutable, but not yet refuted by facts and lies between an ac hoc theory and _______________.

2.Which of the following is a positive statement?

a. Housing affordability problem in this country is caused by the planning constraints.

b. People in New Zealand ought to save more for retirement.

c. We have to provide more affordable housing to help the poor.

3.Total revenue is greatest for a demand curve that is:

a. elastic.

b. unitary elastic.

c. inelastic.

4.Let's say that the demand function for cars is given by the following equation:

QDcars = 15,000 - 0.3Price(cars) + 0.01Income + 3Price(bicycles) - 4Price(tyres)

With current average prices, cars cost 18,000 dollars, bicycles cost 1,000 dollars, and car tires cost 1,000 dollars. The average income is equal to 40,000 dollars. The income elasticity of demand for cars is closest to:

a. 44

b. 0.0444

c. 0.0004.

5.When a good's price decreases, and consumption of that good increases, it ismost likelythat the:

a. substitution effect is negative, and the income effect is positive.

b. income effect and substitution effect are both positive.

c. income effect is negative, and the substitution effect is positive..

6.Which of the following statements is true for "a normal good":

a. Its own-price elasticity is positive.

b. Its income elasticity is positive.

c. Its cross-price elasticity is positive.

7.A good is classified as a substitute if its:

a. cross-price elasticity is positive.

b. own-price elasticity is positive.

c. income elasticity is negative.

8.If you want to pay the lowest rent possible, should you hope that demand for apartments is elastic or inelastic, if real estate developers in the city build more houses?

a. elastic

b. Inelastic